ISAs 

Guide to the Isa market

  • Describe the history of Isas and why they have become a building block in client portfolios.
  • Identify how to protect investments held in stocks and shares Isas from volatility and whether there is value in having a cash Isa.
  • List the different types of Isa available now and consider whether there are too many in the market.
CPD
Approx.60min
Guide to the Isa market

Introduction

Isas have been around for nearly 20 years, and have been a certain success story.

Millions have been ploughed into Isas, as savers and investors saw the benefit of getting all their returns and growth tax-free.

Such is the success of the Isa concept, that more recent chancellors have weighed in and sought to gain from their popularity by launching new Isas: Help to Buy, Innovative Finance and Lifetime.

Many think this has made the Isa idea too complicated, introducing a layer of rules that make the choices more complex.

Nonetheless, the Isa brand remains untarnished as a viable way of saving and getting the tax benefits. Once invested over the years, this can add up to a sizeable pot, which can be used for all sorts of long-term savings objectives.

For regular Isa investors, the stocks and shares Isas will be subject to the same vagaries as any other stock market investor, so savers will have to take the same interest in what goes on in international markets as the average investor.

This guide will look at why they have become a useful building block in client portfolios but are there now too many Isa products?

It will also consider how clients with stocks and shares Isas can protect their investments from geopolitical risk and, finally, the guide asks whether there is any value in cash Isas.

Contributors to this guide are: Scott Gallacher, chartered financial planner at Rowley Turton; Adrian Lowcock, head of personal investing at Willis Owen; Patrick Connolly, chartered financial planner and head of communications at Chase de Vere; Jamie Smith, financial adviser at Foster Denovo; Julia Groves, partner and head of crowdfunding at Downing Crowd; Heather Owen, financial planner at Quilter Private Client Advisers; Jason Witcombe, chartered financial planner at Progeny Wealth; Frazer Fearnhead, chief executive of The House Crowd; Darius McDermott, managing director of Chelsea Financial Services; Willis Owen; HMRC.

Melanie Tringham is deputy features editor and Saloni Sardana is a features writer at FTAdviser and Financial Adviser

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Mr Connolly, one of the benefits of Isas has, in the past, been their what?

  2. Mr McDermott suggests investors will favour investing in which two types of funds over Isas?

  3. Ms Owen says the buying power of money held in cash Isas is doing what in real terms?

  4. Is the following statement true or false? Mr McDermott thinks Brexit may, in fact, give cash Isas a slight boost in demand.

  5. Mr Lowcock describes which type of Isa as "the right thing to do"?

  6. According to Mr Lowcock, the Ifisa was what?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe the history of Isas and why they have become a building block in client portfolios.
  • Identify how to protect investments held in stocks and shares Isas from volatility and whether there is value in having a cash Isa.
  • List the different types of Isa available now and consider whether there are too many in the market.

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Investments CPDSee my completed CPDSee all CPD

Comments